Charges hit OM Holdings profit

Manganese miner
OM Holdings
said its underlying profit was $2.4 million in the first half of a tough 2012, with the statutory result weighed down to a $29.4 million loss by a $32.1 million non-cash impairment charge related to its investments in Northern Iron and Shaw River Manganese.

Encouragingly, the miner said it had stockpiled $144.6 million worth of manganese mined at lower cash costs of $3.39 a dry metric tonne unit, positioning it to capitalise on the improved quarter three benchmark price of $US5.35 a dmtu for shipments over the next three months. The second quarter benchmark price was $US4.86 a dmtu.

“The strong operating result was achieved in a challenging market environment characterised by the euro-zone debt crisis, a slowing Chinese economy, a strong Australian dollar, weaker manganese ore spot prices as well as rain events impacting operations including rail service disruptions at the company’s Bootu Creek Manganese Mine," OM said in a statement.

OM said the impairment charge against its Northern Iron investment was booked when the Norway-focused iron ore miner’s shares traded at 93¢ on June 30.